ESKOM HOLDINGS SOC LIMITED - Standard and Poor's revises outlook on Eskom and affirms credit rating.

Standard and Poor's revises outlook on Eskom and affirms credit rating.

Eskom Holdings SOC Limited
JSE Code: BIESKM
Date 01 March 2019


MEDIA STATEMENT




Standard & Poor’s revises Eskom’s outlook to stable an affirms credit ratings

Friday, 01 March 2019: Standard & Poor’s has announced its decision to revise their
outlook on Eskom to stable from negative. The rating agency has also affirmed the
company’s foreign and local currency long-term credit ratings of ‘CCC+’; and the long and
short-term national scale ratings of ‘zaB’ and ‘zaB’.

The rating agency’s decision follows the announcements made by the Minister of Finance
Mr Tito Mboweni in his national budget speech on 21 February 2019 where he indicated
that government will extend a provisional support package to Eskom, totalling R69 billion
over a three year period to 2022. The support package is expected to enable Eskom to
meet its debt service obligations.

Eskom has to date secured 95% of its R72 billion funding requirement for FY18/19 and
35% of the company’s indicative R48 billion funding requirement for FY19/20. The
company remains cautiously optimistic that they will secure the full funding requirement for
this year owing to improved market sentiment on Eskom.

Eskom’s Chief Financial Officer, Calib Cassim said: “we are encouraged by the rating
agency’s decision to positively revise their outlook on Eskom and affirm the credit ratings.
We view this decision as a positive reinforcement of the strides that we have made to
improve Eskom’s liquidity position. The moderately improved liquidity will allow us the
flexibility to focus on continuing to secure the funding required for the FY19/20 and
stabilise Eskom’s security of supply’.


ENDS


Issued by: Eskom Media Desk
Tel:       +27 11 800 3304/3343/3378
Cell:      +27 82 805 7278
Fax:       086 664 7699
Email:     mediadesk@eskom.co.za

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